In order to assist you in making a decision on a franchise and whether or not it is right for you, the FTC Federal Trade Commission has prepared information that you can access here. The resources here from the FTC will help you understand your obligations as a franchise owner as well as to how best shop franchise opportunities and ask the right questions before making a decision.
A franchise opportunity typically enables you, the investor or "franchisee," to operate a business. Usually for a franchise fee the franchisor or company that you are buying into will share their business model with you and allow you use the franchisor’s name. For example, the franchisor may help you find a location for your outlet; provide initial training and an operating manual; and advise you on management, marketing, or personnel. Some franchisors offer ongoing support such as monthly newsletters, a toll free 800 telephone number for technical assistance, and periodic workshops or seminars.
While buying a franchise may reduce your investment risk by enabling you to associate with an established company. The real advantage of purchasing a franchise is that you have guidance and are not "re-inventing the wheel". If you were to go out and start your own business, usually you would not have a successful model to follow or even a business plan to get started.
Researching Franchise Businesses
In order to assist you in making a decision on a franchise and whether or not it is right for you, the FTC Federal Trade Commission has prepared information that you can access here. The resources here from the FTC will help you understand your obligations as a franchise owner as well as to how best shop franchise opportunities and ask the right questions before making a decision.
A franchise opportunity typically enables you, the investor or "franchisee," to operate a business. Usually for a franchise fee the franchisor or company that you are buying into will share their business model with you and allow you use the franchisor’s name. For example, the franchisor may help you find a location for your outlet; provide initial training and an operating manual; and advise you on management, marketing, or personnel. Some franchisors offer ongoing support such as monthly newsletters, a toll free 800 telephone number for technical assistance, and periodic workshops or seminars.
While buying a franchise may reduce your investment risk by enabling you to associate with an established company. The real advantage of purchasing a franchise is that you have guidance and are not "re-inventing the wheel". If you were to go out and start your own business, usually you would not have a successful model to follow or even a business plan to get started.